FY 2027 Budget
The FY 2027 Budget is the City of Fairfax's annual operating and capital budget for the fiscal year beginning July 1, 2026. 5 separate matters touch this plan or program; each has its own status.
The FY2027–FY2031 Capital Improvement Program (CIP) is the City's five-year capital spending plan covering fiscal years 2027 through 2031. The review process began in October 2025, when Planning Commission staff introduced the upcoming CIP review cycle.
- Consideration and appropriation of the FY 2027 Budget, FY 2027 Schedule of Rates and Levies, FY 2027–2031 Capital Improvement Program, and establishment of Real Estate and Personal Property Tax Rates
The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
Beacon Landing
Beacon Landing is a 54-unit supportive affordable housing development in the city, developed in partnership by Wesley Housing and the Lamb Center. The project drew on 23 separate financing sources, including a $700,000 gap financing investment from the city's Housing Trust Fund in February 2023 — a critical contribution that enabled the project to assemble its full financing stack.
- Consideration and appropriation of the FY 2027 Budget, FY 2027 Schedule of Rates and Levies, FY 2027–2031 Capital Improvement Program, and establishment of Real Estate and Personal Property Tax Rates
The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
The Stacy C. Sherwood Community Center at 3740 Blenheim Boulevard is a City of Fairfax facility that has served as a venue for community events and, more significantly, as the anchor site for the broader Willard-Sherwood Health and Community Center project.
- General Updates
The upcoming FY 2027 budget development was highlighted; the December 2 HHCAB presentation to Mayor and Council may also serve as an opportunity to recommend dedicated revenue sources for the Housing Trust Fund.
Fairfax Presbyterian Church
- General Updates
The upcoming FY 2027 budget development was highlighted; the December 2 HHCAB presentation to Mayor and Council may also serve as an opportunity to recommend dedicated revenue sources for the Housing Trust Fund.
WSHCC
The West Side Heating/Community Center (WSHCC) is a City of Ann Arbor parks capital project that has been tracked by the Parks and Recreation Advisory Board (PRAB). Through mid-2025, the project was in a planning and financial analysis phase, with staff preparing low, medium, and high cost-recovery scenarios to address concerns about staffing costs and the overall cost of the building; the community preference for open gym time over heavy rental usage was noted as a tension with cost recovery goals.
- New Business – FY27 Budget
Multiple CIP requests presented for FY27, including OTS improvements, parks facelift, NOVA Parks contribution, Van Dyck Master Plan, Sherwood Community Center expansion, security cameras, asphalt/resurfacing, Blenheim Boulevard tunnel lighting, turf field replacement, KJM fields, and Barker House assessment.
- Staff Update
The City Manager presented the proposed FY 2027 budget to Council on February 24, 2026; the presentation noted no new initiatives or service expansions, and the $600,000 requested for ongoing Housing Trust Fund revenue was not included.
Dr. Wright noted significant work on the FY27 budget process is expected throughout the month, including collaboration with the city council. Ms. Hickman expressed she is looking forward to the joint session with the city council the following evening to discuss the budget and stated full support for the city manager's proposed budget presented on February 24th.
- Staff Update
The City Manager presented the FY 2027 Proposed Budget to Council on February 24, 2026; the budget included no new initiatives or service expansions, and the requested $600,000 for ongoing revenue to the Housing Trust Fund was not included.
- Mar 10, 2026City Council · item 7bPublic Hearing – Proposed FY27 Budget
A public hearing on the proposed FY27 budget was held with public comment received; no Council action was taken at this meeting.
- Mar 24, 2026City Council · item 7bPublic hearing on the proposed FY27 budget
A public hearing was held on the proposed FY27 budget. Several members of the public spoke, including comments on funding a Climate and Energy Manager position and police compensation concerns. No Council action was taken.
- Staff Report
The City Manager presented the proposed FY 2027 budget to Council on February 24, 2026; no new initiatives or service expansions were included, and the $600,000 requested for ongoing Housing Trust Fund revenue was not included.
- Apr 7, 2026City Council · item 1dDiscussion on the proposed FY 2027 budget, General Fund Questions and Discussion
Council discussed General Fund questions, directed staff to review Budget Memos #1, 5, 6, and 8, and reached consensus on next steps for the BPOL tax and Transient Occupancy Tax introductions.
- Public hearing on the proposed FY27 budget
Public hearing held on the proposed FY27 budget. Public comments included support for a full-time Climate and Energy Manager position and concerns about maintaining business competitiveness regarding meals tax, transient occupancy tax, and BPOL changes. Budget adoption is scheduled for May 5, 2026.
- Discussion on the proposed FY 2027 budget and draft changes
Council reached consensus on Scenario 3.A.A. for the FY2027 budget, setting the real estate tax rate at $1.0725, BPOL professional services rate at $0.45, BPOL other services rate at $0.30, and TOT at 10.5%; formal adoption scheduled for May 5, 2026.
- Sep 8, 2026City Council · item 6Consent Agenda
A resolution for reappropriation of general/operating, capital, and enterprise funds carryover to FY 2027 (appropriated in FY 2026 and unspent as of June 30, 2026) was approved unanimously as part of the consent agenda.
passedApproval of the full consent agenda.
In full
Budget development began in fall 2025, with staff presenting a range of CIP requests to the Parks and Recreation Advisory Board in September 2025. The City Manager presented the proposed budget to Council on February 24, 2026, with no new initiatives or service expansions; notably, the $600,000 requested for ongoing Housing Trust Fund revenue was not included. Council held multiple public hearings on March 10, March 24, and April 14, 2026, receiving public comment on topics including police compensation, a real estate tax rate increase, a full-time Climate and Energy Manager position, and proposed changes to the meals, transient occupancy, and BPOL taxes.
On April 7, Council reached consensus to advance BPOL and Transient Occupancy Tax increases, and on April 28, Council reached consensus on Scenario 3.A.A., setting key tax rates. On May 5, 2026, the City Council unanimously adopted the full FY 2027 Budget (6-0 on all votes), including the FY 2027–2031 CIP, Schedule of Rates and Levies, employee compensation adjustments, and appropriation resolutions R-26-16 through R-26-24. A subsequent FY 2027 fund reappropriation for carryover amounts unspent as of June 30, 2026 was approved unanimously on September 8, 2026.